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Astec Analytics, a division of SunGard Data Systems, provides investors with short selling market color using data from the securities lending market.
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  • Cost-to-borrow BPI spikes as only 7% of outstanding shares are held by institutions 0 comments
    Oct 6, 2010 11:52 AM | about stocks: BPI
    Short interest has tripled for Bridgepoint Education over the past year.  That move has been mirrored in the securities lending market, as shown in the chart below.  What is new is that the cost-to-borrow has recently spiked from 80 bps to 720 bps over the past month.  Institutional investors are lending out almost all of their available shares (utilization is currently at 97%) and since 72% of the outstanding shares are held by insiders and only 7% by institutions, it's no surprise that the available supply would be quickly tapped out. 

    BPI's share price, currently at $15, is at the same level it was last year, but down from a high of $25 in April of this year.  Evidently, the funds that are borrowing and shorting BPI believe that the share price is still overvalued.

    Themes: Consumer services, schools Stocks: BPI
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bourse, Consumer services, energy, Gas Consumable Fuels , Greece, Greek short sale ban, Greek sovereign debt crisis, Health Care Equipment Supplies , Oil, oil and gas sector, schools, short selling
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